Specifically, the parties will consider forming a capital alliance in which LVC will increase capital by way of third-party allotment of new shares to Nomura

The MOU outlines the general terms and details to be considered for the Alliance. Execution of the Alliance is subject to an evaluation of the alliance’s impact, authorization by relevant authorities, a contract determining the final understanding of the operation (“Final Contract”), and the execution of a subset of agreements necessary for the Alliance. The companies plan to conclude the Final Contract by the end of March 2019, and will make announcements promptly should any matters requiring disclosure arise.

1. Background and purpose of the MOU

The Nomura Group is a leading financial institution with a strong global franchise. Under its corporate mission, “We help to enrich society through our expertise in capital markets,” the firm aims to become the most trusted partner for its clients.

Meanwhile, LINE Corporation is driving forward a Smart Portal strategy in which the LINE messaging app serves as a gateway through which users can seamlessly connect with people, information, services, companies, and brands without having to leave the LINE app. Under its corporate mission of “Closing the Distance,” LINE provides high value-added services to its over 78 million monthly active users (MAU) in Japan.

The decision made by the three parties to execute an MOU is based on their intent to collaborate in blockchain business opportunities by leveraging LINE’s large user base and its secure and convenient UI/UX, and Nomura Group’s established financial business know-how.

2. Nomura Holdings, Inc. overview

(1) Name: Nomura Holdings, Inc.

(2) Location: 1-9-1 Nihonbashi, Chuo-ku, Tokyo

(3) Representative: Koji Nagai, President and Group CEO

(4) Business: Holding company

(5) Capital: JPY 594.493 billion (as of September 30, 2018)

(6) Date of establishment: December 25, 1925

(7) Number of employees: 28,549 (consolidated; as of September 30, 2018)

(4) Business: Operation of digital token and blockchain-related businesses as a LINE Group company

(5) Capital: JPY 1.21 billion (as of July 31, 2018)

(6) Established: January 30, 2018

5. Future projections

The effects of executing the Alliance on LINE, LVC, and Nomura’s respective consolidated earnings is expected to be insignificant. The companies will promptly make an announcement if the possibility of a material impact arises in the future.